Conflict Free Service
This is something that most people I am sure don’t know anything about. If they do, they most likely have no idea how important it is to the process of listing or buying a house and how it could affect their wallet in the end. So, without sounding condescending… please pay attention and learn something very important! It’s a tad dry but it could not only save you a lot of money, but it will give you piece of mind when you sell or buy your next home.
~ Bob
All around the world it is forbidden for one attorney to represent the interests of both parties in a dispute, trial or lawsuit. One can almost immediately recognize the conflict of interest that is bound to occur in this situation.
Now, throw into the mix a commissioned salesperson’s ability to earn twice the amount of money “or more” from the sale of a home if he or she wants to favor one party’s advantage over the other. When it comes to money, no matter the amount, who knows what another’s persons threshold of risk and reputation is?
What I have just described above is called “Dual Agency”. That’s when one agent is allowed to represent both the seller and buyer in the sale of a house or other property and it is legal in all but 8 states in the United States. Currently, it is legal in New Hampshire, Massachusetts and Maine. Every attorney I know shakes their head in amazement that this continues to go on these days! So why does it?
My best educated guess would be because there is just too much money at stake for the thousands of real estate companies that practice it. Even the National Association of Realtors™, (NAR), an association that prides itself on consumer protection and ethics, has no clear position on the subject. They trust that their members will work within the association’s Code of Ethics and be honest and fair to all customers and clients. Hmm. This leads me to believe that the ethics committee of the NAR must think 100% of it’s members have the greatest integrity if they think everyone of them is going to take a pass on the opportunity to “double dip” on a sales commission! In full disclosure, I am a member of the National Association of Realtors, and I believe they are a well-intentioned organization. However, like most large organizations with tens of thousands of interests to serve, certain ideals are going to cross now and then.
Dual agency is bad and few in the real estate business are not in any hurry to do away with it. I could write a whole page of examples on the many ways it can effect a seller or buyer negatively.
On all residential listing forms and purchase and sale forms you will be asked if you consent to “Dual Agency.” At that point your listing broker or buyer agent should not only explain what it means but how it could impact what you pay for the property and other potential pitfalls of one agent representing both sides of the transaction, and some of the dangers that could occur when one agent tries to work in the interest of both sides. More often than not, they end up working in their own best interest! Here are some problems of dual agency.
- An agent or broker can’t represent the best interest of both parties. How would an agent be able get the most money for their client the seller, while at the same time try to negotiate the best deal for their customer the buyer? (Hint… ya can’t do it!)
- The potential difficulty maintaining confidentiality between the two parties.
- The worry later on by either party of, “Did I (we) really get the best deal letting the seller’s agent represent me (us) too?” Sometimes just the perception of being treated unfairly in a dual agent situation is enough to cause sleepless nights and initiate a lawsuit, and who needs that.
You will not have this problem working with New Day Realty Services, llc.
We are a Single Agency Provider. We only represent the interests of home sellers in the sale and transfer of what is often their biggest asset –their home! So you can rest easy that your best interest is being served by highly- trained experienced real estate brokers at a price that respects your home’s equity with much fairer “Fee For Services” pricing as opposed to expensive commission-based prices.
